What is the bankruptcy manager doing?
Depending on the type of bankruptcy, the bankruptcy administrator has many work obligations. For example, when a person under the bankruptcy of Chapter 7 in the United States, the bankruptcy administrator liquidates the debtor's assets and give them to various creditors according to the rules of the state where the debtor is located. According to the bankruptcy laws of Chapter 11, the bankruptcy administrator can help create and enforce reorganization plans. If the debtor submits chapters 12 or 13 a code of bankruptcy of the United States, the bankruptcy administrator will supervise the repayment of the debt under the law and ensure that fraud and abuse do not occur if the assets are liquidated. In addition, the administrator may ensure that any costs related to liquidation are proportionate and that creditors do not interfere with the debtor.
The United States is not the only country that appoints bankruptcy administrator to debtors. For example, Canada also has bankruptcy administrators. In Canada, the former administrator is licensed to hold and distribute assets to creditors under Canadian bankruptcy and the Insolvency Act. ShutterIt is also used in the UK and Australia. In these countries, the administrator may inform creditors of the debtor's assets, answer the creditors, investigate the debtor's finances and distribute liquidated assets under the laws on the bankruptcy of these countries.
According to the bankruptcy code in the United States, the bankruptcy administrator has a specific obligation. For example, if the debtor submits bankruptcy under Chapter 7 of the Code, the administrator will supervise the debtor's assets. In addition, it can organize a meeting with creditors and question the debtor on assets. Once assets are assessed, the administrator may collect them from the debtor and transfer these assets to cash by their sale. The administrator can then distribute the cash obtained to the asset to different creditors according to the order stipulated by the Bankruptcy Act.
If a person submits the bankruptcy of the Bankrot Code under Chapter 13, the bankruptcy administrator's duties are almost the same asHer duties under Chapter 7, except that she may also be in charge of reorganization plans. In these cases, the reorganization plan may appear and speak in court. It can also provide the debtor's legal council and help the debtor to reorganize the plan. In addition, it can ensure that the debtor makes planned payments as planned.